Pedlars were the first direct sellers. Later, direct selling was a flourishing industry in Europe and continued to grow. It helped trade growth and took that trade to the four corners of the world. It is most likely that many of the pioneers that travelled to America were direct sellers.
Then in 1886, from a small office in Manhattan, David H McConnell started Avon, the industry giant we know today. It wasn't until the 50s and 60s that modern direct selling took off in the United States, then on to the UK during the 70s. By 1980, companies such as Herbalife were operating from Hobart in Tasmania to Reykjavík in Iceland.
I have my own stories of direct selling, and I'm sure many of you do. I remember back in the 70s, my dear mum going to Tupperware parties and then trying Avon for herself. A few years back, my wife worked with Kleeneze, which she really enjoyed, My wife also said that all the walking delivering catalogues was good exercise, which saved on gym fees (every cloud, so to speak).
Direct selling has become ever more popular in the UK since the 2008 recession. A mixture of less job security, austerity, the rise of new exciting companies and several other factors have given people the nudge they needed to go into business for themselves. Not everyone has the funds or can afford the financial risk to open a shop, so direct selling is a good starting option.
According to the Direct Selling Association, there are 563,000 people involved with the industry in the UK – however, what exactly is modern direct selling? Let's take an in-depth look into how it works, the pros and cons, what's required, the need to knows and last but not least, tips and advice from genuine direct sellers.
When you earn a living by selling products in a non-retail environment (shopless), it is called direct selling. Generally, you'll be an independent contractor as opposed to an employee. You'll have a direct selling organisation such as Amway or Younique from which you may buy and sell.
Sellers rely on their communication skills and often demonstrate products in people's homes to small groups, often called parties. With modern social media, many sell to their social network or create virtual parties.
People sell from their chosen organisation, offering varying products from company to company, most organisations commonly offer either health, cosmetics or homewares.
Since COVID, many companies are doing everything they can to support direct sellers. Some organisations, for instance, offer online catalogues and provide you with a unique URL (link). You, in turn, give that link to your customers so they can buy online; you then get paid a percentage of the sale called commission.
TIP: When researching your chosen company, it's always a good idea to see what support services they offer you.
That's just one way. Essentially you sell exclusive products (generally not sold in shops) to your customers and earn a commission.
You may hear all about the success stories. But to make a decent living takes perseverance and hard work. You'll need to build a good network, so get out there and meet and chat to people who have shown interest in the products you promote. Building a good network will take time, whether that be online or not.
TIP: You'll never build a good network if you just focus on family and friends. One of the benefits of direct selling is meeting new and exciting people.
Always be professional and polite. Also being friendly, bubbly, chatty, outgoing, quirky and confident may also help. Find what works for you and stick with it. Beware of propositions that promise huge monthly earnings, while it is possible, good companies will never make these promises. So when choosing your organisation, do your research.
TIP: You may have seen people spamming social media with all sorts of promises on your earnings potential, I'd avoid these and again do your research.
No initial outlay.
Amway Business Owners earn money by selling high-quality brands covering health, beauty, energy, and home, and by helping others grow their businesses.
They use a system called afterpay to cover the cost of your starter kit which comes out of your future earnings.
ENJOpreneurs promote and sell cleaning products that have no toxic chemicals
Small initial outlay usually one of two choices: The welcome Kit £10 and the Ultimate Welcome Kit £30
As an Avon rep you'll sell make-up, skincare, bath and body, fragrances, fashion and gifts
Initial outlay is £199.75 for the Start Your Journey Pack.
You'll promote a wide range of products based on Aloe. Health, skincare, drinks and gels Etc.Initial outlay around £40
Nutrition, supplements and personal care if healthy living is your gig then Herbalife may be for you.
Become a consultant for £24
Scentsy’s flagship product line of scented, wickless Scentsy Bars heated in handcrafted warmers provides a safe, personal alternative to traditional candles. Additional product lines.
Initial outlay £50 for your training, and once accredited, set up cost is £150.
After training consultants provide one to one support, flexible weightloss plans, products and business opportunities.
Initial outlay is £19 with an annual membership of £10. You can also purchase a premium business kit for an additional £20
Becoming a Brand Partner you will promote and sell beauty products.
It costs just £48 to join with no additional subscriptions or renewal fees.
Usborne Books offers a range of some 3000 exciting and inspiring books, and activities suitable for all ages.
Initial outlay is £69 for the Younique Presenter Kit
Younique's Presenters earn money by selling beauty and skincare products. Younique is one of the younger companies in my list.
TIP: Separate your business' social network from your family and friends social network and never give out too much personal information.
The first rule of selling anything is to be passionate about the product. If you don't care about what you're selling, it will be so much harder to overcome the obstacles to success. If you love trying makeovers, then cosmetics may be a great choice; if, however, you're into fitness, perhaps nutrition will be more a better fit.
Now you need to look at the companies that offer the products that spark your interest. Try out the products if you can, check the commission structure and benefits offered. Do the company values fit with your values?
Where's the best place to start looking for your new business partner? The Direct Selling Association (DSA) have a list of member companies operating in the UK. Of course, you may be recruited by a friend or already have a company in mind.
There are some great companies that are not members of the DSA. I may of mentioned this a few times already, but please do your homework. How long has the company been operating? What are their reviews like? Do they have great support services? Speak to other reps already working for your chosen company for more insight. Always find the best fit for you. You can always change your mind later on.
TIP: If you go to bed thinking about makeovers and wake up thinking about makeovers, selling cleaning products may not be for you. Always focus on what you love.
There are laws covering selling in the UK and many other things you may not have thought of yet. May I suggest reading the DSA's Code of Practice PDF? It will be worth your time.
Suppose you plan on selling to people in other countries. Seldia EU is the DSA equivalent in the EU. Outside of that, you will need to comply with WFDSA World Codes of Conduct for direct selling.
If you plan on selling products door to door you will need a pedlar's certificate (this shouldn't affect you if you are working for an association, run parties or sell via the web). Same can be said if you plan on selling via a market stall. More information can be found at Gov.UK
You will most likely be self-employed, so you'll need to register with HMRC. You'll now be responsible for paying your tax and National Insurance, and each year you will need to file a tax return. If it's within your budget, it may be a good idea to hire the services of an accountant.
The DSA recommend DSL Acounting for your direct selling accounting needs.
Since Brexit, selling to anyone in the EU has a new set of rules and requirements to adhere to; GOV UK has a wealth of information.
If your business is going well, you may need to hire some help. Whether it's to help with your business or perhaps to carry out other duties to free up some more time for you, you'll probably need Employer's Liability.
Employer's liability is a legal requirement in the UK whether you hire paid or voluntary staff on a permanent or temporary basis.
There are some exemptions. Speak to your insurance broker or give us a call if you need to check.
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